Tongling Nonferrous (000630) Company Annual Report Comment: High-end lithium-ion copper foil production capacity is gradually delivered and the company’s future performance is stable and better

Tongling Nonferrous (000630) Company Annual Report Comment: High-end lithium-ion copper foil production capacity is gradually delivered and the company’s future performance is stable and better
The substantial increase in net profit attributable to the company is in line with expectations: Recently, Tongling Nonferrous Metals released its 2018 annual report, and the company achieved revenue of 845.89 ppm, a ten-year increase2.62%; net profit attributable to mother 7.09 million yuan, an annual increase of 31.99%; net profit after deduction 5180,000 yuan, an increase of 17 in ten years.62%; the profit distribution plan is 0 cash for every 10 shares.3 yuan (including tax).Through the management of corresponding receipts and accounts, the company’s operating cash flow realized from negative to positive, reaching 55.6.5 billion.Affected by the increase in financing costs and the net exchange loss caused by the depreciation of the RMB, the financial expenses for the period rose to 10.62 ppm, an increase of 100 in ten years.02%, a slight drag on performance, but benefited from the rise in prices of main products such as copper, gold and sulfuric acid, and the company’s overall gross profit margin rose by 0%.35 shares per share, the combined asset impairment over the current period decreased by more than 41.09%, forming a certain support for performance, the company’s performance is in line with expectations. Copper business volume continued to grow The volume and price of sulfuric acid business rose: the company produced 132 copper halides in 2018.86 for the first time, growing by 3 per year.92%; copper content of copper concentrate 5.37 for the first time, growing by 14 per year.96%; copper processing material 35.05 for the first time, with an annual increase of 4.78%; sulfuric acid 422.At the beginning of 28, it increased by 11 every year.61%.The production and sales of main products continued to grow, forming a support for the company’s performance.Affected by environmental protection inspections in 2018, the price of sulfuric acid rose sharply, an increase of more than 30%, and the volume and price of the company’s sulfuric acid products rose, significantly increasing the company’s performance.We expect that the environmental protection inspectors will continue to move forward in the future, the price of sulfuric acid is expected to remain high, and the company’s sulfuric acid business will continue to contribute substantial profits. The high-end lithium-electric copper foil production capacity gradually 无锡夜网 releases the Group’s high-quality mining development injection: the company’s first-stage advanced energy storage ultra-thin electronic copper foil project Phase I has been completed and gradually delivered capacity.After reaching the production capacity, the company will have the capacity of 4 copper foils, including standard foil 2.25 inches (ton profit 7,000 yuan), lithium battery copper foil1.75 tons (ton profit 10,000 yuan).Against the background of the rapid development of the new energy automobile industry, the high-end lithium-ion copper foil has gradually promoted the company’s performance.In addition, the Group’s overseas mining construction has entered the stage of completion, with strong injection expectations, and the company may become a leading source of stocks and smelting in the future. Investment suggestion: We expect the company’s EPS for 2019-2021 to be 0.08 yuan / 0.09 yuan / 0.11 yuan, the corresponding PE is 34.25/28.75/24.07 times, maintaining the “recommended” level. Risk reminder: Copper processing fee declines New energy vehicle production and sales are less than expected Project advancement is less than expected